“It allows you to apply risk-based haircuts against portfolios," said Actman, who is Sterling's director of business development. .

The all-encompassing solution consolidates multiple risk platforms into one. It leverages quantitative and statistical analysis to manage real-time risk for hundreds of portfolios. The platform's capabilities include a historical VAR, Greeks analytics and a risk dashboard.

SEM, on the other hand, assists clients in regulatory compliance when onboarding subscribers through an automated verification process. Traders leverage the entitlement manager to electronically sign market data agreements.

“One of the interesting things in this space is market data. What not a lot of people are aware of is that if you are providing market data, you are considered to be the vendor of record, and by being considered the vendor of record, you and your client need to make sure that all of the appropriate paperwork is completed for each type of market data,” Actman said.

What’s Next?

STT is aiming to build out its infrastructure and platform capabilities.

“I would say that within the end of the year [or] beginning of next quarter, you'll see some type of announcement from us where we are adding a new type of asset class," Actman said.

When asked about support for digital currencies, Actman said he could not confirm or deny whether cryptos will be added to the Sterling platform.

The firm also plans to build on additions like a real-time trading simulator.

“It’s staying ahead of the curve — adding new asset classes [and] enhancements on the technology side, and then for infrastructure and routing, we are always looking at adding new destinations and new markets."

The Takeaway

Sterling's risk tool, entitlement manager and simulator were all released within the last 2 1/2 years, Actman told Benzinga.